Should you just say no to a Clearwire colo?

Discussion in 'Managing Projects and Business Issues' started by Petzl Head, Oct 10, 2011.

  1. Petzl Head

    Petzl Head Friend of the Community

    Clearwire will put a spin on Sprint's snubbing them during an investors' conference when Sprint said it plans to aggressively roll out its own 4G LTE service next year, but it wasn't just an oversight. You don't forget your partner that you own 50% of.

    Sprint will be able to move to LTE quicker than if it relied on Clearwire, which currently furnishes its older WiMax 4G.

    Clearwire has also said it's moving to LTE, but it doesn't have the financing to do it and Sprint isn't going to fund them, or so it appears.

    If LightSquared get's approval for its rollout you can bet that Sprint's going to divorce itself from Clearwire after its wholesale deal is up in two years.

    That would cripple Clearwire, but it would also put a hurting on a lot of folks who rely upon the WiMax provider to stay afloat.

    So, as enticing as it might be to get Clearwire's next PO for a new colo, at what point do you just say no?
  2. Ken Schmidt

    Ken Schmidt Friend of the Community

    A colo is a colo. I don't see why you would say no to Clearwire at any point unless the tower is near capacity and you have someone else likely to use that capacity in the near future. Worse case is you end up with equipment on the tower you have to remove (like Metricom)

    PS- I suspect that this is simply a Machiavellian ploy by Sprint to push Clearwire to bankruptcy.
  3. Towerpro1

    Towerpro1 Friend of the Community

    As a contractor there comes a point where I just have to say no to a new colo. You're already 60 to 90 days due when things are fine. Then Clearwire starts having funding problems and it will get worse. At that point they could easily be into you for $150 grand or more. For me, 85% of it is in direct labor and operating expenses.

    The tower company ends us with equipment on the tower. I end up with the problem of trying to meet payroll while waiting years to get ten cents on the dollar .....if anything..... if they go belly up.
  4. Ken Schmidt

    Ken Schmidt Friend of the Community

  5. Marc LeClair

    Marc LeClair Frequent Poster

    I always used to say with conviction that with its 58% investment Sprint would never let Clearwire go out of business. Wrong!!!!

    It basically looks like Sprint is telling Clearwire to take a hike. You're right it could be a plot to have Clearwire go bankrupt or have its stock go down so low that Hesse and company could buy its billions of dollars of spectrum at fire sale pricing.

    The problem is Sprint's penny stock is going down the tubes as well and they don't have any money to do it.

    Open Range Wireless just filed for bankruptcy, LightSquared could get some unpleasant news in December, Sprint is cash strapped and losing money, and Clearwire is bleeding money left and right.

    Ladies and gents hang onto your wallets. It looks like it's going to be a bumpy ride.
  6. Head Coach

    Head Coach First Time Poster

    Boy, were you guys ready to throw Clearwire under the Sprint bus. But, as you can see, life is good. I guess all of the complaining about.."What in the heck are thinking about throwing away 54% of a company that they spent $8.58 billion. That's why the stock tanked on the same day.

    What really still blows me away is the $20 billion dollar contract for an iPhone 4s that doesn't work on a LTE network. A network that they say they are heading toward (as we can now see that this is true) But, I am still hoping that this $20 billion dollars was for an exclusivity right to sell the iPhone 5 and not just 3 POS phones that anyone can sell.

    If they did do an exclusivity deal with Apple, they are going to pull off the great coup de grace in telephone history. Why? because there are 50 million new smart phone and tablets that will be on the market and there need to be some type of infrastructure to make all of these toys work.

    Their move to continue to support Clearwire to me is a positive indicator that they exclusivity thing might be possible. Well why not? AT&T got the first exclusivity rights for the first iPhone...why not Sprint! Plus, the way I see it, Google spent $12 billion on patent rights by acquiring Motorola mobile. So, I think for $20 billion, surely Sprint has something else up there sleeve in January.
  7. Ken Schmidt

    Ken Schmidt Friend of the Community

    I don't believe that Apple would do an exclusive deal with Sprint or anyone else. They sell devices and take revenue from the app store. The more devices, the more app sales, the more people invested in the Apple universe. Doing an exclusive deal with the third largest carrier would not yield any of these results.

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